Friedrich Merz, the Chancellor of Germany, on the last day of his Asian tour at the Germany-Asia Business Conference in Seoul, emphasized Germany and Europe's readiness to cooperate with Asian economies to establish a rules-based economic system.
The Necessity of Establishing a Rules-Based Trade Order
Merz stated that the European Union is ready to lead in shaping better agreements for Asian countries that are under pressure from an unstable trading order. He said: "Competition between the United States and China is increasing. Tariffs, technological decoupling strategies, and fierce competition for critical raw materials and new technologies are fundamentally changing the rules of the global economy."
New Business Opportunities and Challenges
Merz further added: "These conflicts and systematic changes in power patterns concern us all. These issues are particularly important for economic partners in the Indo-Pacific region as well as for Germany and Europe." During his trip to Singapore and Japan, Merz emphasized the necessity of establishing free trade partnerships and greater cooperation between Europe and Asian economies.
In Singapore, Merz called for a free trade agreement between the European Union and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This agreement is a broad multilateral trade agreement that connects the Asia-Pacific region to the Americas. The United Kingdom is the only European signatory of this agreement, although it is outside the European Union. The United States also withdrew from this agreement during Donald Trump's presidency in 2017, canceling the original version, the Trans-Pacific Partnership (TPP).
Germany's Role in Asia
Merz stated in Seoul: "We want to offer opportunities beyond bilateral agreements." He also pointed out that when supply chains become political tools and access to key technologies is blocked, these issues jeopardize the growth and security of regions. South Korean Prime Minister Han Duck-soo referenced Germany at this conference, stating: "German companies use Korea as a major hub to expand their presence in the Asia-Pacific region."
In light of these developments, the question arises as to who should be elected as the new President of Germany. Many are calling for the election of Germany's first female president. Chancellor Friedrich Merz has remained silent on this matter.
This week, both the Chancellor and the President of Germany were in Asia, and Merz called for strengthening trade relations with middle powers. Meanwhile, President Frank-Walter Steinmeier has focused on diplomacy during his several-day visit to China.
